SPARTANBURG, S.C., Aug. 05, 2016 (GLOBE NEWSWIRE) — Carolina Alliance Bank (OTCQX:CRLN) today reported its second quarter 2016 financial results. Net income available to common shareholders of $1.9 million, or $0.29 per diluted common share, was reported for the six months ended June 30, 2016, compared to net income available to common shareholders of $0.8 million, or $0.16 per diluted common share, for the six months ended June 30, 2015. This $1.1 million increase in earnings was largely attributable to increased core earnings due to the increase in earning assets and non-interest income from the merger with PBSC Financial Corporation and Pinnacle Bank of South Carolina (“Pinnacle”) which closed in October 2015. Also contributing to this increase in net income was a decrease in the provision for loan and lease losses in 2016 compared to 2015.
“As an extension of the integration of the mergers that occurred in the past two years, efforts are being focused on refinement of our business processes to drive cost savings and revenue enhancements without sacrificing the quality of customer service,” said Terry Cash, Chairman of the Board of Directors.
Gross loans and leases increased by $134.3 million to $475.3 million on June 30, 2016 from $341.0 million on June 30, 2015. Of the increase, $116.1 million is attributable to Pinnacle loans added as of the merger date. Total assets increased to $633.5 million at June 30, 2016 from $432.8 million at June 30, 2015; of the $200.7 million increase, $147.8 million was attributable to the Pinnacle merger. Total deposits increased to $527.1 million on June 30, 2016 from $355.9 million on June 30, 2015, an increase of $171.2 million. Pinnacle’s deposits totaled $121.6 million as of the merger date.
Total shareholders’ equity on June 30, 2016 was $70.1 million, or 11.1% of total assets, compared to total shareholders’ equity of $52.9 million, or 12.2% of total assets, on June 30, 2015. Book value per common share was $10.74 as of June 30, 2016 compared to $9.99 as of June 30, 2015. The bank’s capital levels continue to exceed the levels required by regulatory standards to be classified as “well capitalized,” which is the highest of the five regulator-defined capital categories used to describe an institution’s capital strength.
Non-performing assets as a percentage of total assets at June 30, 2016 decreased to 0.39% from a year prior at 0.72%. Non-performing assets were $2.5 million at June 30, 2016, as compared to $3.1 million at June 30, 2015.
At June 30, 2016, the allowance for loan and lease losses stood at $4.8 million, which is 1.01% of gross loans. During the six months ended June 30, 2016, recoveries of loans charged off exceeded charge-offs by $55,000.
“While we continue to benefit from the positive impact of the Pinnacle merger, loan payoffs in 2016 have been at a record level. Largely these payoffs have come from debt reduction by businesses and from customers’ sales of real estate. Few payoffs came from refinancing with competing financial institutions,” said John S. Poole, Carolina Alliance Chief Executive Officer. “Fortunately, the negative impact of these payoffs has been somewhat offset by mortgage origination income from the strong performance of our mortgage lending program.”
For other information about Carolina Alliance, please call (864) 208-BANK (2265) or visit our website.
Certain statements in this release contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties, and other factors, such as an economic downturn nationally or in the local markets we serve; competitive pressures among depository and other financial institutions; the rate of delinquencies and amounts of charge-offs; the level of allowance for loan loss; the rates of loan growth or adverse changes in asset quality in the bank’s loan portfolios; and changes in the U.S. legal and regulatory framework, including the effect of recent financial reform legislation on the banking industry, any of which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements.
CONTACTS: John S. Poole (864) 542-2615 John D. Kimberly (828) 255-5711